Tonight's Chinese Manufacturing Report Was A Big Green Shoot

China's official manufacturing PMI report
climbed to 50.6 from 50.2 a month ago. However, the
number was shy of the 50.8 forecast by economists.

So was this a disappointing report?

Not when you look at the sub indicies.

"It’s especially encouraging that the rise of PMI was mainly
driven by new orders (to 51.2 in Nov from 50.4 in Oct),
suggesting output will be further boosted in coming
months," writes Bank of America's Ting Lu.

What about employment, one of two components of the report that
fell (the other nine components rose)?

"Employment declined to 48.7 in Nov from 49.2 in Oct." writes
Lu. "Note the adjustment in labor market usually
lags behind economic conditions as firms are reluctant
to cut payrolls in the early stage of a slowdown, and also
slow to increase hiring in a recovery. We expect
that the current labour market could ensure that Beijing keeps
policy easing/stimulus to support growth."

Overall, the report confirms the idea that economic growth bottom
in Q3 and is currently accelerating argues Lu.